POST UTME CALEB UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity sold. If the firm sells 20 units, what is the total revenue?
A. 1200
B. 1500
C. 1800
D. 2000
Question 2
A sole trader has been operating a business for several years. The business has been profitable, but the sole trader has not been paying taxes on the profits. What is the likely consequence of the sole trader's actions?
A. The sole trader will be required to pay a penalty of ₦100,000
B. The sole trader will be required to pay back taxes and interest
C. The sole trader will be required to pay a fine of ₦500,000
D. The sole trader will be required to pay a fine of ₦1,000,000
Question 3
A risk management strategy involves diversifying investments across different asset classes. What is the primary benefit of this approach?
A. To increase potential returns
B. To reduce potential losses
C. To improve liquidity
D. To enhance creditworthiness
Question 4
A consumer protection agency has received a complaint from a customer who purchased a product online. The customer alleges that the product was not as described and that the seller failed to provide a refund. The agency has investigated the matter and found that the seller had breached the consumer protection laws. What is the likely outcome of the case?
A. The seller will be fined ₦50,000
B. The seller will be ordered to refund the customer's money
C. The customer will be required to pay the seller's legal fees
D. The case will be dismissed
Question 5
A sole trader, Mr. A, has a business that generates an average profit of ₦1,500 per day. If he operates for 300 days in a year, what is his total profit for the year?
A. ₦450,000
B. ₦450,000
C. ₦450,000
D. ₦450,000
Question 6
A country's trade balance is given by the equation TB = X - M, where TB is the trade balance, X is exports, and M is imports. If the country's exports are 100 billion naira and its imports are 80 billion naira, what is the trade balance?
A. 10 billion naira
B. 20 billion naira
C. 30 billion naira
D. 40 billion naira
Question 7
A consumer has purchased a product online and is not satisfied with the quality. The consumer has contacted the seller and requested a refund. However, the seller has refused to provide a refund. What is the likely outcome of the case?
A. The consumer will be required to pay the seller's legal fees
B. The case will be dismissed
C. The seller will be ordered to refund the consumer's money
D. The consumer will be required to pay a fine of ₦50,000
Question 8
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to sell 50 units of output, what price should it charge?
A. 20 naira
B. 30 naira
C. 40 naira
D. 50 naira
Question 9
A company is considering the introduction of a new production process. The process requires a significant investment in new equipment and training for the workforce. However, the company's financial analysts have estimated that the process will generate a return on investment (ROI) of 20% per annum. If the company's cost of capital is 15% per annum, what is the expected net present value (NPV) of the investment?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 10
A company imports goods worth ₦5,000,000. If the exchange rate is ₦450 per US dollar, what is the value of the goods in US dollars?
A. 11,111.11
B. 11,111.12
C. 11,111.13
D. 11,111.14
Question 11
A company has a fixed cost of ₦50,000 and a variable cost of ₦10 per unit. If it sells 100 units, what is its total revenue?
A. ₦1,000,000
B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000
Question 12
A company's financial statements are audited annually by an independent auditor. What is the primary purpose of this audit?
A. To verify the company's tax returns
B. To ensure compliance with regulatory requirements
C. To provide an opinion on the company's financial position
D. To identify areas for cost reduction
Question 13
A consumer protection agency has identified a company that has been engaging in unfair business practices. The agency has the power to impose a fine of up to ₦5 million on the company. If the company has a net worth of ₦10 million, what is the maximum percentage of its net worth that the fine represents?
A. 50%
B. 50%
C. 50%
D. 50%
Question 14
A country's inflation rate is given by the equation IR = (P1 - P0) / P0, where IR is the inflation rate, P1 is the current price level, and P0 is the previous price level. If the current price level is 120 and the previous price level was 100, what is the inflation rate?
A. 0.2
B. 0.4
C. 0.6
D. 0.8
Question 15
The concept of comparative advantage in international trade suggests that countries should specialize in producing goods for which they have a lower opportunity cost. What is the opportunity cost of producing a good?
A. The value of the good in terms of other goods that could be produced instead
B. The cost of producing the good in terms of labor and resources
C. The price of the good in the international market
D. The quantity of the good produced

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